Annualized Total Return

Filed Under » , , ,
Dictionary Says

Definition of 'Annualized Total Return'

The average amount of money earned by an investment each year over a given time period. An annualized total return provides only a snapshot of an investment’s performance and does not give investors any indication of its volatility. Annualized total return merely provides a geometric average, rather than an arithmetic average.
Investopedia Says

Investopedia explains 'Annualized Total Return'

A mutual fund could earn returns varying from 3 to 5% each year and have an annualized total return of 3.995%. On the other hand, a fund could also be much more volatile, losing 3% in one year, earning 12% in another and have an annualized total return of 4.23%. The difference is the first fund would offer steady returns while the second would offer widely fluctuating returns.

Annualized Return = [(1+R1)*(1+R2)...*(1+Rn)] ^ (1/n) 

Where R = annual return for a given year
Search results for

'Annualized Total Return'

  • Scoring Fund Performance Data | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp9-perform-metrics/scoring-performance.asp
    All three fund reports - Morningstar, Standard & Poor's, and Value Line - provide
    comprehensive multi-year annualized total return data. ...

  • Fund IQ Number 1: Investing Style | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp3-invest-obj/fund-iq1.asp
    ... Five-year annualized total return: 10.81%. FPA Paramount Fund (FPRAX). ... That said,
    it's hard to argue with the fund's five-year annualized total return of 14.9%. ...

  • Mutual Fund Performance Data | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp9-perform-metrics/performance-data.asp
    ... on a roller coaster. To illustrate this point, let us revisit XYZ Fund's
    five-year annualized total return of 12%. It would be a ...

  • Published Mutual Fund Returns Not Always What They Appear

    http://www.investopedia.com/articles/02/013002.asp
    ... Fund A has a five-year annualized total return of 12%; Funds B and C have
    five-year annualized total returns of 8% and 4%, respectively. ...

  • Fund IQ No.7: Comparative Total Returns | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp9-perform-metrics/fund-iq7.asp
    ... To help readers get a quantitative fix on mutual fund annualized total return numbers,
    below are the fund category averages as per Morningstar's FundInvestor ...

  • Finding Value In A Sideways Market

    http://www.investopedia.com/articles/trading/08/non-directional-sideways-trendless-market.asp
    ... 1996 and September 2000, the S&P 500 had a total return of 130.8% and an annualized
    return of 25%; there were 29 positive months and 16 negative months. ...

  • Measuring And Managing Investment Risk

    http://www.investopedia.com/articles/08/risk.asp
    ... For example, during a 15-year period from August 1, 1992, to July 31, 2007, the
    average annualized total return of the S&P 500 Stock Index was 10.7%. ...

  • How To Profit From Investment "Losers" - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0310/How-To-Profit-From-Investment-Losers.aspx
    ... of the annualized standard deviation and returns for each asset class, the weighted
    average risk and return and the total portfolio risk and return from ...

  • Fund IQ No.4: Manager Tenure and Structure | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp6-fund-mgmt/fund-iq4.asp
    ... manager. In the case of the ABC Fund, it has the same 10-year annualized
    total return of 1%, but it has had two different managers. ...

  • Series 66 Study Guide - Measuring Portfolio Returns - Introduction ...

    http://www.investopedia.com/exam-guide/series-66/measuring-portfolio-returns/default.asp
    This section discusses different return measures: return on investment,
    holding period, annualized, risk free and total returns. ...

Related Articles

Partner Links